President Donald Trump’s “Liberation Day” catalogue of disruptive global tariffs is shattering a global trading system that has delivered benefits globally, especially to the United States, for more than eight decades. The impact affects friends and foes alike and the element of trust, essential for any international agreement, has gone as we enter a “law of the jungle” trade world where “might is right” and “the devil takes the hindmost” sentiments prevail.

“America First” bombast stimulates Trump’s ardent MAGA followers, and he seldom lets facts interrupt his version. But the markets are in free-fall, signalling deep dissatisfaction with the tariff blitz. Ross Feber, a financial pundit, describes the tariff moves as a “disaster of idiocy.”

If the tariffs spark inflation, that could backfire badly with the U.S. administration since anti-inflation rhetoric and pledges to redeem prices were key to Trump’s election.

Canadians are sufficiently outraged by the cavalier and lawless behaviour of our erstwhile ally and neighbour that they will support a measured response on tariffs. The notion of a high-level dialogue with the U.S. administration after our own upcoming federal election to address economic and security issues may have some allure, but Trump’s word is not his bond. Besides, his dealmaking prowess may carry more risk than reward as the Ukrainians, among others, are tragically learning.

Beyond the uncertainty of an all-out trade war, an even bigger threat to Canada’s economic wellbeing is the degree to which our own economy has become less competitive with that of the U.S. Productivity and investments sagged badly during the lost decade of virtue-signalling and green evangelism—global posturing that did little for the national interest.

Canada must completely overhaul its economic growth policy framework on taxes, regulations, investment initiatives and project development processes to establish some competitive edge vis-a-vis the U.S. Top priority should be given to our energy and natural resource sectors. We must remove the burdens imposed by the Impact Assessment Act (commonly known as the “anti-pipeline law”) and other regulatory barriers—mostly prime examples of purposeless global posturing—and enable expeditious production and exports of oil and LNG to welcoming markets in Europe and Asia. Redress the uncompetitive tax framework regarding business investment and build new pipelines urgently to serve those markets.

The “Ring of Fire” mining resources in Northwestern Ontario—rich in nickel, cobalt, copper, platinum and chromite—have been hobbled by multiple, often duplicative, studies that serve no purpose other than to stall development. Rich deposits of rare-earth minerals in Canada are locked in by similarly absurd regulatory processes that take 15 years or more to gain approval.

Here are more suggestions:

Redress the uncompetitive tax framework regarding business investment. It may be more popular during elections to pander for votes with personal income tax cuts, which will be costly but do little for the national interest or competitiveness. We need more effective corporate and capital gains tax rates to attract business investment, and that should be the dominant focus of tax reform.

Competitiveness should also be the guide to reforming the oligarchic domination of key sectors such as banking, transport, telecoms and retail, notably groceries.

The premiers should be tasked to remove all interprovincial trade barriers within 60 days or face reductions in federal grants. Pension funds should be explicitly directed to invest a portion in Canada.

We should also be “on guard” with new trade remedy authorities should countries such as China and other global players seek to divert exports to Canada as they are priced out of the U.S. market.

The bloated top-heavy federal bureaucracy, some of whom were meekly complicit during the lost decade, should be dramatically downscaled and injected at the top with new outside blood.

These reforms are even more acute at a time when the U.S. administration is aggressively enticing more than US$7 trillion of foreign and domestic investment to build manufacturing plants exclusively in America.

Choosing a leader and a party best able to meet these unique challenges should be the determining factor in the April 28 election. Above all, we must squarely face a future in which constructive, mutually beneficial relations with the U.S. are no longer assured. Self-reliance is our most urgent priority.